Johnson & Johnson's Q3 2024 Earnings: What to Expect

With a market cap of $390 billion, New Brunswick, New Jersey-based Johnson & Johnson (JNJ) is a leading healthcare company. Operating across the pharmaceuticals, medical devices, and consumer products sectors, it develops a diverse range of products aimed at improving global health and well-being. The pharmaceutical giant is expected to announce its fiscal Q3 earnings results for 2024 before the market opens on Tuesday, Oct. 15.

Ahead of this event, analysts expect JNJ to report a profit of $2.18 per share, a decrease of 18.1% from the previous year's $2.66 per share. However, the company has surpassed Wall Street's bottom-line estimates in the last four quarters. The company exceeded the consensus estimate by 4.1% in the most recent quarter.

For fiscal 2024, analysts expect JNJ to report EPS of $10.01, up marginally from $9.92 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow nearly 6% year-over-year to $10.61.

JNJ has risen 4.1% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 34.4% gain and the Health Care Select Sector SPDR Fund's (XLV) 19.6% increase over the same period.

Johnson & Johnson's stock surged 3.7% on Jul. 17 due to a strong Q2 performance, with sales of $22.4 billion and adjusted earnings of $2.82 per share, both surpassing analyst expectations. The impressive growth was primarily driven by robust sales of its key cancer drugs, Darzalex and Stelara, which rose 18.4% and 3.1%, respectively. Furthermore, the company raised its 2024 sales guidance from $89.2 billion to $89.6 billion, enhancing confidence in its financial outlook despite ongoing litigation related to talc products.

Overall, analysts' consensus view on Johnson & Johnson stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 20 analysts covering the stock, six give a "Strong Buy," two have a "Moderate Buy" rating, and 12 give a "Hold" rating. This configuration is slightly less bullish than three months ago, with seven analysts suggesting a "Strong Buy."

The average analyst price target for JNJ is $171.26, suggesting a notable potential upside of only 5.7% from current levels.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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